German auto industry sentiment jumps in July

Business sentiment in Germany's automotive industry improved sharply in July, although it remained in negative territory, according to a survey released by the Ifo economic institute on Wednesday, reported dpa.

The Munich-based institute's monthly business climate index for the sector rose by 6 points to minus 15.6.

The improvement was driven by companies' expectations, which climbed to minus 0.1 points, their highest level in more than three years. The indicator has rebounded strongly in recent months after standing more than 30 points lower in April.

Companies' assessment of their current business conditions, however, remained poor at minus 29.9 points.

However, order intake, for which official data is currently available through May, showed a positive trend from both the domestic market and the eurozone.

"The order books are filling up again somewhat, and export expectations have risen," Ifo expert Anita Wölfl said.

The institute said manufacturers of vehicle bodies and other components that can also be used outside the automotive industry, including in the defence sector, were benefiting from the upturn.

"The rise in investment in armaments across Europe could benefit parts of the automotive industry," Wölfl said.